Organizations and enterprises
require changes in the processes, production, and organizational structure in
order to address changes occurred in the external environment. The biggest
challenge for many organizations and enterprises is to adopt changes required
by the customers and the external environment. Change in the industry
environment is driven by the forces of technology, consumer need, politics,
economic growth and a host of other influences. Big organizational changes
occurred in the history are related to famous companies including Google,
Yahoo, Huawei, British Airways, and Microsoft Inc. Strategic changes occur in
the organization with creative action. Innovation and creativity are the need
of time. In the present, competitive world organization must require innovation
and creativity in the organizational systems to become sustainable and secure
in the market. Strategic choice is basically intended as a means of engagement
and integration in agency environmental influences, and rationality (MacLean &
MacIntosh, 2012).
According to the conducted research
on organizational change a famous UK company British Airways is selected to
track organizational change process. The British airlines were created in the
late 1900s from 4 other companies known as Cambrian, Northeast airlines, BEA
and BOAC. At that time total employees working in the organization were more
than 50,000 (Troyani, 2017). Staffing was even
viewed as oversized but still, British airline started its operations in
different areas of the UK and the rest of the world. The airline was also
involved in cargo services. Freight of oil gallons and other commercial goods
was common in British Airlines. In the 1970s, an incident occurred in which oil
crises shrunk the airline's customer base. At that time, the company was facing
a problem in managing profitability. Massive staff was a key reason to increase
the cost of operations and as a supportive factor to decrease profit margin. In
short, the company faced huge financial loss because of massive staff in the
organization. The company started the investigation of this financial loss and
it resulted in the change of chairperson in 1981.
Lord King the new chairperson noticed
that British Airways was operations were inefficient and involved in the
wasting of valuable resources. He decided to bring change in the organizational
system to increase profit margin and decrease cost. Thus he restructured the
overall organizational system by downsizing employees from 59,000 to 39,000.
Moreover, chairperson also took the decision to eliminate the unprofitable
routes and
The changes were the requirement of
the external environment. The competitor companies of British Airways were only
providing services to profitable routes. The limited workforce in the competitor
organization was also contributing to the increase in their profit and market
share maximizing. Moreover, increasing trend of marketing and promotion through
digital technology made it essential for British Airways to advertise and
market their services and products like their competitors to remain competitive
in the market. British Airways introduced new advertisements and marketing
campaigns to build a new image of the company in the minds of consumers. In
short, the change process was consist of these following activities (Troyani,
2017):
·
Conducting research in the external market to
collect information about new requirements and changes.
·
Conducting research within the organization to
understand the difference between input and required output and key reasons for
this output.
·
Found reasons and eliminated reasons by
decreasing employees, changing marketing style, and changing services (as
eliminated unprofitable services).
After adopting these changes
British Airways was capable to deliver high profit. According to the records,
just in 10 years, small duration British airways was capable to deliver the
highest profit of $284 million in its industry.
The tools used to
manage the change were Stakeholder analysis, culture mapping, Gantt charts, and
process maps. Organizational management involved planning, controlling,
leading, and monitoring in the change management process. They utilized Gantt
charts for scheduling activities related to the implementation of the change. Moreover,
stakeholder’s analysis tool was also used to consider the interest and
requirements of stakeholders in the implementation of change.
According to a research study
conducted by the Maclean and MacIntosh on the strategic change as creative
action willingness to change or move forward is essential to bring changes in
the organization. Willingness starts from bringing changes in the belief and
later on result in the change of behavior. The mind is the creative part of the
body that deals with the feelings and vague impulses to action. We can
deliberately or involuntarily lose control of the body – a key part of
creativity – and action is enabled by the subjective presence of a ‘body
schema' (i.e. a background awareness of the body's configuration. British
Airways modified the behavior of employees and particularly managerial staff to
control the wastage of valuable resources. Moreover, changes in the vision of
pay more focus on the increase of profitability changed the behavior of
employees and increased readiness to adopt changes (MacLean & MacIntosh,
2012 (Troyani, 2017)).
1.
Choose an industry facing
fundamental technology change (e.g. the recorded music industry vs digital
technology, computer software vs open-source, newspapers vs the Internet,
corporate IT services vs cloud computing…). In relation to one leading player
in the industry, discuss the problems posed by the new technology.
Fundamental Technology Change
Technology never remains the same. In
our modern world, technology is changing with the advancement of science and new
experiments. Now communication and information technology are changing in such
a way that will result in the change of businesses also. The captured value,
way of production, way of interaction within and outside the organization, and
overall organizational systems are getting change in response to changes
occurred in the organization. Technology has made it possible for organizations
to easily communicate and interact with the customers and stakeholders (Cascio &
Montealegre, 2016).
Moreover, rapid production and improved manufacturing system are also the
results of advancement in the technologies. Basically, technology has changed
each and every industry but the most influenced industries are recorded music
industry vs digital technology, computer software vs open-source, newspapers vs
the Internet, corporate IT services vs cloud computing. Conducted reach on
technological change and impact on the leading player in the industry indicated
that Amazon is getting advantages as well as facing problems posed by the new
technology. Technology changes are generating effects on labor or workforce,
jobs, electronic monitoring systems, shipment, robots, supply chain, customer
interaction, and productivity within industries.
Amazon works in the e-commerce industry with
cloud computing integration systems. For instance, Kiva robots used in the
Amazon warehouses have made it possible for the organization to fetch racks
with ordered goods, find goods across the large warehouse, and deliver packages
to the customers. Robots are replacing a human being in the organization as a
result of this microenvironment is also getting change. Jobs replaced by the
robots is the key problem that can cause to influence the image of the
organization in society (Cascio & Montealegre, 2016). Amazon is creating
a negative image in the society as a result of continuous downsizing of
workforce in the warehouses. Somehow, technology is also resulting in an
increase in competition that will influence sales of Amazon. Other competitor
companies are adopting modern digital ways of marketing and advertisement.
Moreover, teleconferences and virtual teams are also supporting an increase in
sales. Cloud computing also has security issues that cause problems. Data
breaches and external access cases are quite common that all were caused by the
poor systems of information and communication technologies. Somehow, evaluating
the advantages and disadvantages of advancement and changes in the technology
we can say that most of the organizatio, particularly leading organizations
take more advantage of the technological change as compared to the other
competitor. Somehow, for this, it is essential for the organization to have a
flexible system to rapidly jump on the new technologies. Research studies have
also proved that technology is making easy for organizations to deal with the
customers as they no longer required to have face to face interaction. Amazon
customers can communicate and ask queries from the support team to get an
overview of the new products. Customers can contact the support team through
the use of advanced information technology (Cascio & Montealegre, 2016). As a result of this,
their buying decision can be managed easily. New technologies sometimes come up
with negative consequences in such way organizations may face a challenging and
problematic situation.
Conclusion on Fundamental Technology Change
Summing up the discussion about the
technological change in the organizations, it can be said that the change in
the industry environment is determined by the technology forces, politics,
consumer need, economic development and a host of other effects. Strategic
choice is essentially planned as a means of integration and engagement in
agency environmental effects, and rationality. The airline was a part of the
cargo services. Freight of commercial goods and oil gallons was common in
British Airlines. In the 1970s, an event occurred in which oil disasters
contracted the airline's customer base. In the competitor organization, the
limited workforce was also contributing to the rise in profit and maximizing
market share. British Airways presented new marketing and advertisements
campaigns to shape a new image of the company in the consumers’ minds.
The tools used to deal with the
change were culture mapping, stakeholder analysis, process maps and Gantt
charts. Willingness starts from carrying changes in the certainty and afterwards
result in the behaviour change. British Airways adopted the employee’s behaviour
and mainly decision-making staff to control the wastage of valuable resources.
Furthermore, swift production and improved manufacturing system are the results
of development in technologies. Robots are substituting humans in the
organization as an effect of the microenvironment is change. External access and
data breaches cases are fairly common that all were initiated by the poor
systems of communication and information technologies. The customers in Amazon
can ask queries and communicate from the support team to get a new products overview.
References of Critical Thinking- Strategic Planning
MacLean, D., & MacIntosh, R. (2012). Strategic
change as creative action. Int. J. Strategic Change Management, 4(1),
80-98.
Troyani, L. (2017). 3 EXAMPLES OF ORGANIZATIONAL
CHANGE DONE RIGHT. Retrieved from www.tinypulse.com:
https://www.tinypulse.com/blog/3-examples-of-organizational-change-and-why-they-got-it-right